NEW YORK--(BUSINESS WIRE)--Manhattan Scientifics Inc. (OTCQB:MHTX) anticipates positive changes resulting from its plan to list the company’s cancer diagnostic unit, Senior Scientific, on the Australian Stock Exchange.
The changes include:
- Retirement of the company’s long-term debt of $2.5M leaving MHTX with virtually no long-term debt on its balance sheet.
- Senior Scientific, renamed Imagion Biosystems, issued a $6.9M Promissory note to its parent, Manhattan Scientifics, which will convert into equity upon certain events.
- All future funding obligations required to commercialize the cancer diagnostic activity are transferred to Imagion Biosystems.
- The parent company, which presently owns 100% of Imagion Biosystems, is relieved of payroll and overhead costs of Imagion Bio.
Manhattan Scientifics has fulfilled its mission to acquire, fund, prototype and assist Senior Scientific to incubate its cancer nanotechnology technology with a stated goal to bring product to the market. Currently, Manhattan Scientifics owns 100% of Imagion Biosystems.
Manny Tsoupanarias, Manhattan Scientifics CEO said, “Manhattan Scientifics will now focus on its nano-structured metals business, which has generated approximately $14M cash since 2010. Completion of this spin-off is a very significant milestone for both Manhattan Scientifics and Imagion Biosystems and we are excited about Imagion’ s potential and extend our best wishes for success to Imagion’ s management team and new board of directors.”
Marvin Maslow, Manhattan Scientifics Chairman said, "We believe this to be a winning strategy for our shareholders. The elimination of significant overhead and the freedom to source new acquisition opportunities is exciting." Mr. Maslow continued, "Today our MHTX shareholders own the same value they owned before the Spin-out of Imagion Biosystems; they own shares in MHTX, which in turn owns all the shares Imagion Biosystems. Dilution will follow as Imagion Biosystems raises new capital. The achievement is that we recapitalized Senior Scientific/ Imagion Biosystems and it can move forward to complete its work and create value for all the MHTX shareholders."
About Manhattan Scientifics, Inc.
Manhattan Scientifics Inc. (www.mhtx.com) is located in New Mexico, New York and Montreal. It is focused on technology transfer and commercialization of transformative technologies.
About The Australian Stock Exchange
The ASX is a leading financial Stock Exchange, consistently ranking among the top five exchanges globally and a favorable exchange for a technology company such as Imagion. With a total market capitalization of around $1.5 trillion, ASX is home to some of the world’s leading resource, finance and technology companies. Shares are easily tradeable in New York.
This press release contains forward-looking statements, which are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. Management at Manhattan Scientifics believes that purchase of its shares should be considered to be at the high end of the risk spectrum. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements.